Insurance at the Event of Earthquakes

Insurance can be called as a promise of compensation for any potential losses that would occur. It provides reimbursement at crisis situations. Many types of insurances are being offered. Some of the types of insurance among many are life insurance, health insurance, credit insurance, public liability insurance, and automobile insurance.

Property insurance is one of the types of insurance that many people get insured with. Among the property insurance types, earthquake insurance is one type. At certain times the property of insured ones gets damaged due to earthquakes. Earthquake insurance is the policy that pays compensation at the time of earthquakes.

Earthquakes may occur at any time. Claims that have been filed have exceeded more than $12 billion regarding earthquakes in the past few years. Earthquake is the highest costing natural event that is very difficult to recover. The risk prone areas are in large numbers in California and the U.S. This insurance is not covered by certain insurance companies in their normal residential policies and for business. This is due to the reason that the risk during earthquakes is very large and requires huge costs.

The earthquake insurance offers compensation for damages to structural buildings and properties during earthquakes. The premiums for the earthquake insurance is often very high. The premium also depends on the area that are prone to earthquakes. The premiums are more at the West part of the U.S. It may be upto the range of $1,000. The deductible is also high during the event of loss. It may be upto 10-15% of the amount of the total loss due to earthquakes.